Market Entry Strategies

As a result of global competition and the constantly growing demand for new technologies, strategic alliances are becoming more crucial as its objective is to support the competitiveness of the activities concerned. This is achieved through the pooling of each other’s core competencies and specialization.

What are some factors companies (and your learning team) need to consider before attempting to enter foreign markets? Assuming you were setting up a market program for a product in a foreign country (and you are), what should you take into consideration? Assume you are developing an advertising strategy for the promotion of a new product (and you are). What are some things you should consider?

According to our textbook, global sourcing is the practice of purchasing goods and services from the around the world wherever it is least costly (Pg 82). A strategic alliance is a partnership between two entities in which they both share their

Although partners learn from each other through alliances, promoting inter-firm learning happens when all participants acknowledge a number of critical factors that help or hinder collaboration (Dickson et al., 1997). Compatibility is a critical factor when companies decide to join with one another, and management on both sides examine if the partnership will deliver desired results (Dickson et al., 1997). Although partnering with businesses that offer

High cost of entering new markets International growth is expensive. Entering new markets with a new brand

Strategic Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

When two or more organizations create a formal agreement to work together for a specific purpose, they form an alliance. Alliances offer organizations competitiveness in new business industries and shared responsibility in experience and cost.

Because Navistar is a major trucking company, they are constantly striving to keep their lead by innovating new technologies within their industry. One of Navistar’s main strengths is the ability to gain strategic alliances with other firms in the industry, not only national, but also international. A strategic alliance is an alliance where two or more firms create a legally independent company to share their resources and capabilities to develop a competitive advantage. These advantages enhance a firm’s marketplace success.

As focal firms internationalize they often run into risks that are beyond their capabilities to overcome by themselves. Consequently, many firms often conclude it makes sense to work with a strategic partner with capabilities complimentary to their own to achieve certain projects. When two or more firms come together to manage risks associated with internationalization, they form international partnerships, or international strategic alliances. By working together, focal firms use the capabilities, resources or other strengths of their partners to achieve projects they would otherwise be unable to do alone. There are two basic forms of partnerships, Equity joint ventures and Project-based collaborations. To understand the differences between these two basic types of partnerships it helps to understand how each is structured. (S. Tamer Cavusgil, Gary Knight, and John R. Riesenberger, 2012. International Business: The New Realities. Second edition, page 411).

I believe that it is important to realize that a strategic alliance or partnership is solely depended on trust and faith in the relationship between all involved in simultaneous stages should not change or use those stages for their own advantage without consideration of the organization involved. Some of the advantages would be:

This plan seeks to investigate the viability of establishing Virgin Mobile in Nigeria, then launch upon conviction that the environment is conducive and how we will get our mapped-out target to use our services. For purpose of analysing the business environment, PESTEL and SWOT analysis was used and the focus was basically on the telecommunication industry.

Strategic alliance: In this scope, it is helping to make the foreign sales and exchanges the trade what we done. It is like a third party work.

Describe and analyze the factors identified in the Zahra article as giving competitive advantage to new firms in the globalized economy.

The steps for implementation of the entry strategy into the Asian market include the following:

In case the products will not sell, it is easier to go out of the market. On the other hand if the product sells good, there is the opportunity to sell more capacity or diversify by launching other products. Furthermore the New Caledonian company can first gain some experiences and learn about their mistakes in order to be more successful and sell higher quantities. Beside the Australian market can be entered more rapidly